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  #21  
Old 03-27-2014, 05:59 PM
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It has been my impression that NY is generally against anything unless they thought of it first. And anything that lowers the reserve is not-to-be-thought-of at all.
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Old 03-27-2014, 06:15 PM
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It has been my impression that NY is generally against anything unless they thought of it first. And anything that lowers the reserve is not-to-be-thought-of at all.
Psst ... Check this out:
http://www.actuarialoutpost.com/actu...91#post7352191
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  #23  
Old 03-28-2014, 11:09 AM
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http://www.lifehealthpro.com/2014/03..._LID=164548916

Quote:
New York insurance regulators will reduce reserving requirements on term life policies by an estimated 30 percent to 35 percent starting in January, but will do so by formulas rather than the “principles-based-reserving” (PBR) approach being considered by the National Association of Insurance Commissioners.

The NAIC is being informed of the decision of Benjamin Lawsky, superintendent of the New York Department of Financial Services through a letter written today.

.....
The decision is consistent with Lawsky’s comments last September to the NAIC voicing concern over the NAIC initiative to move to PBR. At that time, Lawsky said that PBR “represents an unwise move away from reserve requirements that are established by formulas and diligently policed by insurance regulators in favor of internal models developed by insurance companies themselves.”

Lawsky released the letter in advance of an appearance this evening at the Life Insurance Council of New York’s (LICONY) 13th Annual Legislative & Regulatory Conference in Cooperstown, N.Y.

Regarding his rift with most state regulators on the PBR issue, Lawsky is scheduled to say that New York regulators do not think the reserve formulas “are perfect or that the formulas always result in the right reserves.”

.....
In the letter, Lawsky said the next step for the DFS will be to update the formulas for universal life insurance policies with secondary guarantees.

An official at an insurer that will be affected by the change said the industry will likely support it. “We agree -- as does most of the industry -- that term reserves are too high and this DFS move is a step toward fixing that problem,” the official said.

He added that life insurers “have been hoping to solve this problem that PBR was intended to solve.”

.....
According to Lawsky’s letter, the updated reserving formulas for term life insurance policies will be effective for new business written after Jan. 1, 2015. The letter said the modifications in the regulation will reflect actuarially sound and evidence-based adjustments regarding mortality data and expenses in acquiring and retaining business for that product.

With regard to mortality, Lawsky said the changes are consistent with evidence that policyholders are generally living longer. He said the DFS will apply a 1.0 percent mortality improvement factor to the current mortality table (2001 CSO) for rates associated with calendar years 2008-2047, and a 0.5 percent mortality improvement factor for each year thereafter. These factors will apply during the initial level premium period.

In addition, DFS intends to introduce a two-year “full preliminary term,” as opposed to the current one-year FPT, to reflect the fact that the upfront expenses for acquiring and retaining term life business are relatively higher as a proportion of premiums paid than for certain other types of business (such as whole life policies). Under the proposal, a two-year FPT will lead to a buildup in reserves after the second policy year.

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  #24  
Old 03-28-2014, 12:55 PM
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Wow

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This is a big effing deal
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Old 04-07-2014, 02:16 PM
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Current update from the ACLI as of 4/3/2014 found here: https://members.acli.com/Issues/Memb...us%20Chart.pdf

Relevant info from first page:
Quote:
12 states have enacted legislation to implement principle-based reserving.
- Arizona
- Indiana
- Iowa
- Louisiana
- Maine
- Mississippi
- Nebraska
- New Hampshire
- New Mexico
- Rhode Island
- Tennessee
- West Virginia

12 states have drafted/filed/introduced principle-based reserving legislation.
- Alaska
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Illinois
- Missouri
- Ohio
- Oklahoma
- Virginia
- Washington

1 state has only enacted the amendments to the Standard Nonforfeiture Law for principle-based reserves implementation.
- Texas

2 states with enacted legislation has filed a technical amendment bill
- New Hampshire
- Rhode Island
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Old 04-07-2014, 03:13 PM
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Thanks for the update. This is really handy for me.
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Old 04-07-2014, 03:15 PM
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btw, does the ACLI give the total premium %age?

I mean, I can look it up myself on AMBest, but I didn't want to do a data pull if I didn't have to.
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Old 04-07-2014, 06:13 PM
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btw, does the ACLI give the total premium %age?

I mean, I can look it up myself on AMBest, but I didn't want to do a data pull if I didn't have to.
Not that I can find - the rest of the document just points to the specific bills and has ACLI commentary.

If you do find the 2008 totals by state, feel free to put them here, and I'll try to update the %ages as well as the states going forward.
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Old 04-07-2014, 06:25 PM
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Not that I can find - the rest of the document just points to the specific bills and has ACLI commentary.

If you do find the 2008 totals by state, feel free to put them here, and I'll try to update the %ages as well as the states going forward.
Okay, give me a few minutes. It's Direct individual life premium, right?
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Old 04-07-2014, 06:37 PM
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Okay, here are my percentages for all states, using direct written Ordinary Life premium from 2008 (total industry, excluding fraternals):

Code:
Alabama 1.49%
Alaska 0.25%
Arizona 1.51%
Arkansas 0.68%
California 11.30%
Colorado 1.54%
Connecticut 1.77%
Delaware 0.90%
District of Columbia 0.24%
Florida 6.25%
Georgia 3.10%
Hawaii 0.58%
Idaho 0.36%
Illinois 4.65%
Indiana 1.78%
Iowa 1.12%
Kansas 0.94%
Kentucky 1.01%
Louisiana 1.48%
Maine 0.31%
Maryland 2.14%
Massachusetts 2.50%
Michigan 2.56%
Minnesota 2.43%
Mississippi 0.80%
Missouri 1.88%
Montana 0.23%
Nebraska 0.73%
Nevada 0.68%
New Hampshire 0.43%
New Jersey 4.21%
New Mexico 0.40%
New York 8.65%
North Carolina 3.21%
North Dakota 0.22%
Ohio 3.52%
Oklahoma 0.93%
Oregon 0.89%
Pennsylvania 4.56%
Rhode Island 0.34%
South Carolina 1.36%
South Dakota 0.43%
Tennessee 1.81%
Texas 6.53%
Utah 0.84%
Vermont 0.20%
Virginia 2.47%
Washington 1.50%
West Virginia 0.42%
Wisconsin 1.72%
Wyoming 0.17%
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